Forex trading for the little guy

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Since alot of these systems are dealing in Forex, we thought that we should provide a overview of what "Forex" is.

The FX Market Structure

The foreign exchange market is the generic term for the worldwide institutions that exist to exchange or trade currencies. Foreign exchange is often referred to as "forex" or "FX." The foreign exchange market is an 'over the counter' (OTC) market, that means that there is no central exchange and clearing house where orders are matched. FX dealers and market makers around the world are linked to each other around-the-clock via telephone, computer, and fax, creating one cohesive market. Since there is no centralized exchange, competition between market makers prohibits monopolistic pricing strategies. If one market maker attempts to drastically skew the price, then traders simply have the option to find another market maker. Moreover, spreads are closely watched to ensure market makers are not whimsically altering the cost of the trade. Many equity markets, on the other hand, operate in a completely different fashion; the New York Stock Exchange, for instance, is the sole place where companies listed on the NYSE can have their stocks traded. Centralized markets are operated by what are referred to as specialists; market makers, on the other hand, is the term used in reference to decentralized marketplaces. Since the NYSE is a centralized market, a stock traded on the NYSE can only have 1 bid-ask quote at all times. Decentralized markets, such as foreign exchange, can have multiple market makers - all of whom have the right to quote different prices.

Centralized Markets
By their very nature, centralized markets tend to be monopolistic: with a single specialist controlling the market, prices can easily be skewed to accommodate the interests of the specialist, not those of the traders. If, for example, the market is filled with sellers from whom the specialists must buy from but no prospective buyers on the other side, the specialist will be forced to buy from the sellers in be in a situation where they cannot sell a commodity that is being sold off and hence falling in value. In such a situation, the specialist may simply widen the spread, thereby increasing the cost of the trade and preventing additional participants from entering the market. Or, specialists can simply drastically alter the quotes they are offering, thus manipulating the price to accommodate their own needs.

Hierarchy of Participants: While the foreign exchange market is decentralized, and hence employs multiple market makers rather than a single specialist, participants in the FX market are organized into a hierarchy; those with superior credit access, volume transacted, and sophistication receives priority in the market. At the top of the hierarchy is the interbank market, which trades the highest volume per day in relatively few, mostly G7 currencies. In the interbank market, the largest banks can deal with each other directly, via interbank brokers or through electronic brokering systems like EBS or Reuters. The interbank market is a credit-approved system where banks trade based solely on the credit relationships they have established with one another. All the banks can see the rates everyone is dealing at, however, each bank must have a specific credit relationship with that bank in order to trade at the rates being offered. Other institutions such as online FX market makers, hedge funds and corporations must trade FX through commercial banks. Many banks (small community banks, banks in emerging markets), corporations, and institutional investors do not have access to these rates because they have no established credit lines with big banks. This forces small participants to deal through just one bank for their foreign exchange needs, and often times this means much less competitive rates for the participants further down the participant hierarchy. Those receiving the least competitive rates are customers by banks and exchange agencies. Recently technology has broken down the barriers that used to stand between the end-users of foreign exchange services and the Interbank market. The online trading revolution opened its doors to retail clientele by connecting market makers and market participants in an efficient low cost manner. In essence online trading platform serve as gateway to the liquid FX market. Average traders can now trade alongside the biggest banks in the world, with virtually similar pricing and execution. What used to be a game dominated and controlled by the "big boys" is slowly becoming a level playing field where individuals can profit and take advantage of the same opportunities as big banks. FX is no longer an old boys club, which means opportunity is abound for aspiring online currency traders.
Our Basic Rules for High Yield Investment Programs (We have Been Asked ALOT about this)

1.) If you can't afford to lose it, do not invest it. This is undoubtedly the Golden Rule, as no matter how much "due diligence" and research you perform on a program, some will always just disappear, for whatever reason, and when they disappear your money disappears with them.

2.) Get your initial investment back out of the program as soon as you can. This way the money invested is pure profit, so it will hurt far less if it disappears. This also frees up your original investment capital to invest in a new program. If a program is going well it will be very tempting to break this rule. We know, and we have and lost because of it. Stick to this rule and you will not regret it.

3.) Diversify. Ideally you want only 5-10% of your overall investment fund in any one program, obviously this does take a while to achieve, but is the safest strategy. The tough part is finding enough long standing, stable, paying programs to invest in.

4.) If you get scammed just move on and learn from the experience. Notifying the authorities is certainly an option that is open to you and is your choice. The important thing is to work out if you broke one of the basic rules and exposed your capital unnecessarily, i.e. learn from your mistakes and try not to repeat them.

We hope you find these "rules" or tips useful. They are the guidelines that We follow and we have found that We have greatly reduced the number of occasions where we lose money. In fact our greatest losses in HYIP were when we first started and did not understand these rules. We now make a profit.

About the Author

An elite team of regular "Joes's" fighting back & making huge cash online one day at a time.
dDawg as a team has been able to create a profit on the internet.


Darren Shazz 15.07.2009. 16:58

Is Currency Trading advantageous for the little guy? I'm in my early 20s and have just started reading up on forex trading. Is is true that i can use leverage using my $300 to make it equal something double or triple that.?

I am aware of the huge risk involved but does forex allow one's cash to go further?

Darren Shazz

Admin 15.07.2009. 16:58

yes, leveraging is used when trading forex and yes, there is very huge risk involved in this business. leveraged trading works by establishing a rate you can use for every dollar in your account. the money you put for the trade is the actual money you risk. it is called ?margin? or the amount you risk. leverage rates are normally from 1:50 up to 1:200 (note: for USA only up to 1:100). for example: If you invest $100 and leverage it at 1:200, then you have $200 to trade for every $1 in your investment (margin). If you start trading with your $100 investment, you can buy up to a value of $20,000 (200x100). check out this source. it will lead you to one of the leading forex brokers these day. browse through the site for more info on forex trading. you may then download a free forex ebook and a free demo account as well. all the best.


aerofreak 01.11.2010. 14:57

What is the best (reliable) online FOREX trading platform? Hi Guys,
I want to start trading forex online (little amounts of money), however i was wondering what is the best online forex trading platform, or "broker" to get started with. I do not live in the United States, and i would want a simple, yet reliable one which i can access from my computer!

Thanks so much


Admin 01.11.2010. 14:57

I personally traded with oanda and did not like when they would widen the spreads 10X during volatile periods. Now Istay with FxPro and MBTRading. Maybe this post can help you:


theahole 03.02.2013. 19:16

How can I learn to trade Forex? I don't know much about finance etc. I downloaded a demo/ practice account so I can try and learn to trade forex, Its always something I have been interested in, kind of like gambling. I expect to lose my money, I view it as payment for having a little fun. I have no idea what im doing and the interface may as well be in Chinese, how do I learn how to trade? Even the "forex for dummies book starts assuming you have basic fundamental knowledge. Are there any instructions for people who are totally and completely ignorant to the way this all works?


Admin 03.02.2013. 19:16

3 Basic Forex Trading Strategies - Richard Krivo (YouTube VIDEO)

This video is about BASIC FOREX TRADING STRATEGIES that can be implemented in a variety of forex market conditions. I like this guy, easy to understand and learn from.


The Butterfly 12.11.2006. 20:19

what is the best forex trading strategy? i want to know a proven strategy for forex trading (swing or long time) and will appreciate if it's from a pro trader.

The Butterfly

Admin 12.11.2006. 20:19

Here is a couple good videos to watch,

Here is a squido site for fxbootcamp that has several good video, if youll take the time to watch these you can learn a lot.

I like Oanda for a starting broker because you can trade with as little as 1 cent a pip on the line, of course youll only be making 1 cent a pip. then as you improve you can step it up a penny or a dime or what ever.
The only bad thing about them is 50:1 leverage and there spread gets very wide during news times.

I also agree with babypips good site.

a short but very good ebook

Here is a good site to learn about the indicators. Just look all over it.

Use Oanda as a demo account. It doesn't expire so you will have as long as you need to practice.

check out this guy:


Aaron 22.01.2010. 23:39

Which is the best forex trading platform? I am a Software Engineer and i would like to invest some of my money into Foreign Exchange. I also did a little survey for the best trading platform, but to my surprise i found a huge list of forex traders. Guys can you help me in finding out the best one for me.


Admin 22.01.2010. 23:39

MT4 (MetaTrader4) is the only platform that you can implement forex robots and just let them trade automaticaly for you.Anyway there are platforms that have different functions.What you should look when searching for a good platform is:
-to be fast on opening and closing positions
-to be able to trade directly from the charts
-to provide technical analysis tools and information
-let you "hedge"

Except MT4 i secondly recommend the FXCM platform


William J 08.01.2009. 21:35

Is 3 pips a competitive spread for a FOREX broker to offer? I am new to FOREX and am considering using HYMARKETS.COM who appear to offer a 3 pip spread. Is this competitive and if not where can this be beaten? Any advice is much appreciated. Thanks

William J

Admin 08.01.2009. 21:35

3 pips for the majors is average.

Check out;

These guys only received 2 stars. Be very careful. FX is one of the least regulated industries. There are no good brokers... there are only brokers that are not as bad as others. There is a 96% chance you'll lose your money in 3 months or less.

Spend some time on education. A year would be a great idea. Paper trading will help you with the platform but will do little to help you with the skill of trading. Your results in paper trading mean very little.


mike 16.01.2007. 05:04

What is the best way to invest 1000$ when you have one hour time daily? is stocks or forex a rational option to invest such a little money if i have one hour of free time? thanks for your help in advance, guys.
I am willing to have a 50% risk of losing it and may use it after one year. what options does that leave me with?


Admin 16.01.2007. 05:04

my advice would be take the investools course and traing, there system will teach you how to make incredible gains in up or down markets. forget B.S. returns from financial planners that will just put you money in a mutual fund. They teach you the technical indicators that proffesionals use. It costs about $2000 then their site costs a few hundred a year, but no site compares with their tools. here's the this link I gave you, scroll down to the left there are a few demos.

To prove how good investools is....Look at the stock chart of theri own stock which the symbol is IEDU.... The stock went from $1 to $14 dollars in like 3 years. That's how good theri system is. Here is the link......

Now if you can't afford it yet, that's okay. keep it in mind for the future.

you can turn that $1000 into $100,000 in one year by trading stocks, not investing. Investing is long term. The stock market is open from 9:30 am to 4:00 pm eastern, everyday. There are stocks that go up 10%, 30%, or even double every day. I work everyday in the afternoon, so I only have from opening bell at 9:30 to 11:00 to trade stocks. The stocks that make the biggest moves everday are low priced NASDAQ stocks. $5 or under.

First you need to open an online broker. I use and opened mine with only $500. I just filled out the required info at their site, and the next day wired transfered the money to them at ll:00 am, and by 1 pm in the afternoon I was able to make my first trade. It's that easy. Anyone is fine. There are two types of accounts, Cash or Margin. If you only have $1000 you can only open a Cash account. With cash accounts, when you sell a stock, you have to wait 3 days for the money to settle before you can buy another stock with that money you got from selling. So When you you first start, you won't be able to make trades everyday because you only have $1000 and will have to wait three days.

Now about trading stocks and finding them.....

Stocks react to PR's (Press Releases) . So in the morning find the stocks that are moving because of good news released that morning, and get in the stock as they are going up, and after you made 5, 10, 15, or what ever percent sell it quickly to lock you profit and forget about the stock. Wait for you funds to settle in three days, and trade again.

Now how do you find the cheap NASDAQ stocks the move the best every morning to good news ? Good question

The best Trading platform for penny stocks is Microcaptrade. I'll give you the link.

All you have to do is look at the top 400 tool at microcaptrade before the market opens. Microcaptrade also tracks pinksheet and OTC stocks, but stay away from those, they are scam stocks and too risky. They don't meet the reqirements for the NASDAQ, NYSE, or AMEX , the three major exchanges. So at the top of the Microcaptrades top 400, uncheck the boxes at the top that say pinks and otc: bb , that way only the NASDAQ stocks will be tracked. then click on the column heading that says trades. That will sort all the stocks by the # of trades. That way you will see what stocks are getting the most buys and sells that day. And all the way to the left there is a column header that says news, if there is a number in that row, that means there was a PR that morning (news). Look at the link I gave you and you can look at the platform. Also microcaptrade has a news tool, that show every single PR that day for either OTC:BB, Pinksheet, or NASDAQ stocks. Once again, just unched the pink and otc boxes , show that you only see the NASDAQ news. the reason I say stay away from pink sheet and otc stocks is that the can go up 50% or double or tripple in one day, or sometimes go up 1000% in a few days to a week, but they can also drop quickly and go back to where they started or below. Another reason is you have to use limit orders and the price changes so much you have to keep changes you limit prices and it's tricky just stay away. With real stocks like NASDAQ, NYSE, Or AMEX stocks, you can use MARKET ORDERS, that means all you have to do is put in the stock symbol and the number of shares, and the order goes through in seconds. To place a trade with $1000, you would subtract the commision. Then divide the money buy the current price of the stock. I use Scottrade. they charge $7 per trade. To make it easy say it's $10. You would subtract 1000 by 10 which is $990. that's what you have to work with. If the current price is at $10 the divide you money by that. That wold give you 99. So you have enough money to buy 99 shares. You would just go to scottrade and put buy 100 shares of xxxx or what ever the sybol is.

The best message board for day traders is the lion. Most people who post there are full time traders that trade for a living....just read their posts and you can make money. Read the wall street pit board at the lion. here is the link...

IHere are some other stock and financial sites in general to get you to learn the basics.

Yahoo finance...type in any symbol --- I put in apple's symbol


this link will show you the stocks with the most percent gainers everyday....You can make these gains everyday....forget 10% a year in a mutual fund

most people into investin and trading subscribe to IBD (Investors business daily)

Investools is awesome....take a free seminar and check it out, you can double you money every year with their methods...which is basicly buy good stocks like google and apple when they go above their charts look good, and sell when the look bad. no need to buy and hold and make something like say 15% a year, when you can buy low and sell high and make say 75% a year on the same stocks by buying and selling it. Here's their link

If you have question about any topic in finance or investing, or is the best site....just put in the keywords of your question


06294086 15.04.2007. 04:13

What is the minimum capital needed for forex, options and futures trading ? Free and recommended simulators ? Hello guys,

I'm interested in learning more about forex, options and futures trading. I heard that there are mini or micro account that can go as little as US$ 200 or 300 dollar. Is it true ?

Also, any recommendations for free forex, options and futures trading simulators ? I know that some websites provide this service but usually the virtual capital is too high (10K or up), and I want to set the initial capital to small amount like US$ 300 or 500.

If possible, is there any recommendations for courses/books ? I'm not aiming for those "fancy" amount of income, several thousand/month is OK. Of course I'm not looking for courses that cost hundreds or thousands of dollars...
Thanks for the input. I agree that it's a bit too much to expect thousands of returns for such a small amount of capital.

But, if I expect my capital which is around 300 or 500 to be doubled by around 1-2 month. Doesn't is sound possible ????
My plan is actually something like this :
The capital will be 300 or 500. The goal is to double the capital by around 1 - 2 mounth(s).
When I have more money, I will buy more lots...

To make it safer, every time I manage to double the previous capital, I will do one more time before I plan to use more capital to trade.

It will be something like this (US$500 capital) :
500 - 1000 - 1000 (don't use for trading) - 2000 - 2000(don't use for trading) - 4000 and so on ...

Now the problem is to find the system that are able to do this... Any recommendations ?

I personally distrust systems that cost hundreds or thousands or dollars. There are simply too many scams...


Admin 15.04.2007. 04:13

Using the Mtpredictor's technical analysis Elliot Wave Principle software, Bsmtprediction provides Forex Traders with FREE access to AUD/USD, EUR/GBP, GBP/USD, EUR/USD, NZD/USD, USD/CAD, USD/CHF, EUR/JPY, GBP/JPY & USD/JPY daily currency forecasts through this website. At Any Time / Any Day (we'll straight away post the signals here in real-time if there's any triggered) 1 hour, 4 hours & daily time frame forecasts are published on this site. The predictions are good from the moment they are published until either it reached the take profit target, hitted the stop loss or another new prediction of the same currency & timeframe unveils on the same / following day. Essentially, the prices shown are for an unknown period.. That's why we encourage you to subscribe our FREE Google Groups newsletter to get the latest signal updates sent to your e-mail from the very 1st minute it surfaces the net..


1 Of You 05.11.2008. 15:20

What is the Fast, Safe, Secure & Legal way to make Money Online and or Offline ? Guys please respond please ..? I need all you people out there to share your ideas, opinions and experiences on How can one make money fast, safe and secure ?
Whether it is an Offline project or Online project doesn't matter but it has to be something genuine .. It really will be kind of you fellas if you help me on this .. I need a little of your precious time ..

1 Of You

Admin 05.11.2008. 15:20

A really good ways to make money online is this site...

things you can do:
1) Flip websites
2) Flip houses
3) Forex trading
4) "pay to click" click on a link and it gives you money - just for clicking!
5) loads of voucher codes to get like money off shipping and money of items for some shops.

the list goes on..!

I use this site all the time its helped me get almost 1k a month

its great if you want to earn a little more cash or want to save money when buying things on the internet.

good luck!



joo80daddy 28.01.2007. 13:49

How to turn $5,000 or little less into tens of thousand of dollars? Hey guys, I don't know if this might sound stupid to you guys, but I'm like in the middle of a finacial crisis. I just got of the army in Korea and have like no idea in life. I have some money saved from the army , which is not much, and I don't know what to do with it. Some people are telline me to invest with it, but some people are telling me it's too risk or little of money to invest with. I know some of guys are probably busy or having the same problem with life and finace. But I'm pretty sure some of you have a success in life which you could share. I would highly appreciate your help.


Admin 28.01.2007. 13:49

I would recommend to invest in currency trading.You can really make good money provided you know which currency to buy and when to sell. Check the website below where the top forex trading programs have been reviewed. I feel it will definitely help you in selecting what you are looking for.
Hope it helps


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